FDI in telecom increased from $ 4.37 billion to $ 357 million during April-December 2019-20.
According to the latest data from DPIIT, Foreign Direct Investment (FDI) in the computer software and hardware sector increased nearly four-fold to $ 24.4 billion during April-December 2020-21.
While the sector received foreign investment of $ 6.4 billion in the year-ago period, the entire 2019-20 saw foreign investment of $ 7.7 billion, data from the Department of Promotion of Industry and Internal Trade (DPIIT) showed. walked.
According to experts, due to the rapid digitalization and the increasing use of artificial intelligence, the work-at-home scenario has become a major opportunity for all computer software and hardware sectors.
Singhi's advisor, Bimal Raj, also said that the sector saw an increase in FDI as there was an increase in electronics and digital transformation globally and Indian tech firms were ideally prepared to capture that potential. .
Other sectors that have recorded significant growth in foreign flows during the nine-month period of 2020-21 include construction (infrastructure) activities ($ 7.2 billion), and pharmaceuticals ($ 1.24 billion).
FDI in telecom increased from $ 4.37 billion to $ 357 million during April-December 2019-20. Automobiles also declined by $ 1.18 billion in April-December 2020-21 against $ 2.5 billion in the same period of the previous fiscal year.
Mr. Sharma said that the key sectors which have the potential to attract more FDI include IT, telecom, pharma and electronics manufacturing.
“With the increasing use of high-end technology during the covid-19 epidemic, the attention of global investors has shifted to the IT and telecom sectors. In addition, the government has emphasized on Make in India and its performance-linked incentives Schemes have been introduced. There will also be faster growth and more FDI inflows in various sectors, “he said.
In addition, during April – December 2020–21, India attracted the maximum FDI ($ 15.71 billion) from Singapore, followed by the United States ($ 12.82 billion), United Arab Emirates ($ 3.91 billion), Mauritius ($ 3.47 billion). , And Cayman Islands ($ 2.53 billion).
Overall FDI equity inflows in the country jumped 40% to $ 51.47 billion.